NZOG to make $100 million capital return via share cancellation
The transaction will need to be approved by shareholders.
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New Zealand Oil & Gas plans to return $100 million of the $168 million it reaped on the sale of its stake in the Kupe oil and gas fields through a court-approved share cancellation.
The Wellington-based company signalled the payment when it sold the Kupe investment and says it will do so via a scheme of arrangement to cancel one out of every two shares for a payment of 62.7c a share. Part-paid shares issued as part of NZOG's employee share scheme won't participate in the capital return.
The transaction will need to be approved by shareholders, with a meeting likely next month, and will also require High Court approval and a binding ruling from Inland Revenue that the capital return isn't in lieu of a dividend payment. If everything goes to plan, the scheme is expected to be effective in late May, NZOG says.
The energy explorer and producer has been overhauling its operations as it seeks out new prospects and plans to use the remaining proceeds from the Kupe sale to buy cheap assets after a protracted period of low energy prices meant lenders were less willing to keep backing unprofitable projects.
The shares last traded at 62.5c and have gained 49% over the past 12 months.
(BusinessDesk)
Paul McBeth
Wed, 08 Mar 2017
Wed, 08 Mar 2017
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NZOG to make $100 million capital return via share cancellation
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